Summary: The Descartes Systems Group Inc.

  • The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

Highlights: The Descartes Systems Group Inc.

  • The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
  • The group's activity appears highly profitable thanks to its outperforming net margins.
  • Thanks to a sound financial situation, the firm has significant leeway for investment.
  • Over the past twelve months, analysts' opinions have been strongly revised upwards.
  • There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

Weaknesses: The Descartes Systems Group Inc.

  • With an expected P/E ratio at 75.88 and 64.7 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
  • The company's "enterprise value to sales" ratio is among the highest in the world.
  • The valuation of the company is particularly high given the cash flows generated by its activity.
  • The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
  • The overall consensus opinion of analysts has deteriorated sharply over the past four months.

Ratings Chart: The Descartes Systems Group Inc.

Source: Surperformance

ESG chart: The Descartes Systems Group Inc.

Source: MSCI

Fundamentals (Composite) Global Valuation (Composite) Financial estimates revisions (Composite) Capi.($)
- 878.97Cr
65TCr
36TCr
21TCr
7.76TCr
- 4.55TCr
2.93TCr
2.59TCr
2.43TCr
Average 15.96TCr
Weighted average by Cap.
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Investor (Composite)
Trader (Composite)
ESG MSCI
AA

Financials

Revenue growth
EPS growth
Capital Efficiency (Composite)
Net Margin
Financial Health (Composite)

Valuation

P/E
EV/Revenue
EV/EBITDA
PBR
-
Dividend Yield
-

Revisions

Revenue revisions (1 year)
Revenue revisions (4 months)
Revenue revisions (1 month)
EPS revisions (1 year)
EPS revisions (4 months)

Consensus

Analysts' buy/sell recommendations
Analysts' recommendations evolution (4 months)
Analysts' target price
Analysts' target price evolution (4 months)
Analysts' target price evolution (1 year)

Business Predictability

Surprise rates
Analysts' coverage
Analysts' recommendations divergence
Analysts' Target price divergence
-
Financial estimates divergence

ESG

Environment
Social
Governance
Controversy
Ethical controversies
Human rights controversies
Tax subsidies controversies
Sharia compliant
-

Technical analysis

ST Timing
MT Timing
LT Timing
RSI
Bollinger Spread
Unusual volumes
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  4. Ratings The Descartes Systems Group Inc.